Purpose of Insurance Cover
Cargo insurance provides its owner with protection against losses resulting from damage to or loss of goods caused by an insured risk. It also provides protection against financial claims made against the owner of the cargo in the case of declared general average.
Scope of Coverage
Insurance covers can be obtained for All Risks (A) or Restricted Cover (C).The ‘Restricted Cover’ provides for coverage in respect of certain named risks only
Types of Cargo Insurance Policies
A specific insurance policy can be purchased for just a single shipment of goods. In the case of traders with the regular flow of imports and exports, an Open Cover/Policy is normally effected. Such Open Cover affords protection to the trader in respect of all his shipments in accordance with pre-arranged rates, terms and conditions. Under such policy of insurance, the trader undertakes to declare all his shipments on a regular basis.